It is inevitable that the banks will collapse

To deposit money in a bank is similar to giving money to the state and expecting something in return in each case we give up wealth on the understanding that something is owed to us in the future. But if we cannot provide our own security (from theft) why should we 'trust' the banks... if the banks are more secure than any security that we ourselves can provide then there would be no reason for the banks to return the money since they are more powerful than we are by definition. Like the state the banks are much more powerful than the individual who uses the banks and so there would be no real reason for the banks to repay the customers other than a failure to receive more deposits (in the future). So if the bank returns your money this is entirely voluntary on their part... they are doing you a favour since they are more powerful than you. Banks have no reason to be loyal to their customers and it is likely that the banks will default on the credit owed to their customers... certainly in the situation of them being unable to pay for having made (bad) loans. If the banks are insolvent they certainly will not be in a position to repay the debts they have created. If a bank practices fractional-reserve banking it is insolvent and will be unable to repay the credit it has created whether it is powerful or not. And neither will the state since to monetise the bank credit with new money is the same as to default on the debt. As soon as the bank causes inflation by making a loan with deposits (which are still considered viable) it has entered insolvency and will be unable to repay the debt. Since most of the loans are false and will not be returned in kind we can say that the bank will be unable to return customer deposits. The banks will default on the credit that they have created... eventually. There will be a default of the customer deposits either by outright refusal to pay or a monetisation of the loans... the banks will collapse since they are not solvent.